NASDAQ$CMBMF

Cambium Networks Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported a strong first quarter driven by enterprise product sales and effective cost management.

Cambium Networks reported a 25% year-over-year increase in revenue, reaching $77.4 million, driven by strong enterprise product sales. The company's profitability was excellent, with a gross margin of 51.2% (52.1% non-GAAP) and operating income of $5.6 million ($9.4 million non-GAAP).

  • Revenues increased 25% year-over-year to $77.4 million.
  • Enterprise revenues increased 130% year-over-year to $35.7 million.
  • GAAP net income was $4.3 million, or $0.15 per diluted share; non-GAAP net income was $6.8 million, or $0.24 per diluted share.
  • Adjusted EBITDA was $10.4 million, or 13.4% of revenues.

Headline financials

Total Revenue

$77.4M

Previous: $61.9M+25.1%
EPS (adj)

$0.24

Previous: $0.01+2300.0%
Adjusted EBITDA Margin

13.4%

Previous: 3.1%+332.3%
Capital Expenditures

-$1.57M

Previous: -$714K-119.7%
Free Cash Flow

$2.71M

Previous: -$2.28M+218.6%
Net Income

$4.28M

Previous: -$1.57M+372.7%
Operating Income

$5.57M

Previous: -$2.2M+353.5%
Gross Profit

$39.7M

Previous: $29.2M+36.0%
Cash & Equivalents

$38.7M

Previous: $38.4M+0.8%
Total Assets

$283M

Previous: $214M+32.1%
Stock-Based Comp

$2.88M

Previous: $2.42M+18.8%

Revenue & EPS history

Cambium Networks · Revenue · Quarterly

$77.4M

Q1 2023+25.1%vs Q1 2022
Beat estimate in 3 of 12 quarters(25%)
ActualEstimate

Revenue by segment

Cambium Networks · $41.7M total across 3 segments · Q1 2023

  • Point-to-Multi-Point
    $22.3M-27.9%
  • Point-to-Point
    $18M+22.4%
  • Other
    $1.45M+93.2%

Forward guidance

Cambium Networks expects revenues between $72.0-$80.0 million for the second quarter of 2023, representing an increase of approximately 4%-15% year-over-year. They also anticipate GAAP operating income between $2.1-$6.2 million and adjusted EBITDA between $6.9-$11.1 million.

Tailwinds

  • Revenues between $72.0-$80.0 million, up approximately 4%-15% year-over-year
  • GAAP gross margin between 49.4%-50.9%; and non-GAAP gross margin between 50.3%-51.8%
  • GAAP operating income between $2.1-$6.2 million; and non-GAAP operating income between $5.9-$10.1 million
  • GAAP net income between $1.2-$4.8 million or between $0.04 and $0.17 per diluted share; and non-GAAP net income between $4.2-$7.6 million or between $0.15 and $0.27 per diluted share
  • Adjusted EBITDA between $6.9-$11.1 million; and adjusted EBITDA margin between 9.6%-13.9%

Headwinds

  • GAAP operating expenses between $33.5-$34.5 million; and non-GAAP operating expenses between $30.3-$31.3 million
  • Interest expense, net of approximately $0.6 million
  • GAAP effective tax rate of approximately 11.0%-15.0%; and non-GAAP effective tax rate of approximately 17.0%-21.0%
  • Paydown of debt: $0.7 million
  • Capital expenditures: $1.5-$2.5 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-2.9%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-0.4%

Avg return

30 days after

39%

11 / 28 earnings

Positive

+20.7%

Q3 2022

Best reaction

-29.8%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+11.8%+11.8%
Q3 2025+0.0%+158.7%+180.0%
Q2 2025-5.6%-21.8%-31.1%
Q1 2025-7.4%-5.6%+10.7%
Q4 2024-13.8%-0.8%-27.2%
Q3 2024-9.9%-3.1%-24.4%
Q2 2024-4.0%-6.2%-5.6%
Q1 2024-13.9%-13.5%-24.0%
Q4 2023+5.5%-3.9%+0.5%
Q3 2023-3.0%-8.9%+0.6%
Q2 2023-29.8%-38.5%-43.1%
Q1 2023-0.3%+3.0%+22.9%
Q4 2022+4.1%-5.2%-18.0%
Q3 2022+20.7%+17.9%+21.4%
Q2 2022+0.1%+1.7%-3.9%
Q1 2022-19.0%-17.6%-14.0%
Q4 2021+12.9%+3.9%+3.7%
Q3 2021-7.8%-7.1%-19.4%
Q2 2021+1.6%-12.4%-19.7%
Q1 2021+3.2%-13.2%-15.2%
Q4 2020+3.5%+4.3%+19.0%
Q3 2020+14.7%-0.3%+14.4%
Q2 2020+4.5%+4.8%+12.2%
Q1 2020-17.8%-25.3%+0.9%
Q4 2019-6.1%-12.9%-34.2%
Q3 2019-16.5%-15.3%-31.2%
Q4 2018-4.2%+1.1%+12.8%
Q2 2019-4.9%-8.9%+1.7%
Q1 2019
Q3 2018
Q2 2018
Q1 2018
Q1 2017

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